Preheat your oven to 350°F (175°C) and prepare a mini muffin pan by spraying it lightly with baking spray.
In a large mixing bowl, beat together the softened butter and powdered sugar until creamy.
Add baking powder, salt, egg, and vanilla extract, mixing until well combined.
Gradually add the flour, mixing until the dough comes together. Avoid over-mixing.
Divide the dough into two portions. Fold red sprinkles into one half and green sprinkles into the other.
Roll the dough into 1-inch balls and press them into the prepared mini muffin pan, creating an indentation in the center of each.
Bake for 8-10 minutes, until lightly golden around the edges. Remove from the oven and cool for 5 minutes before transferring to a wire rack.
While cooling, prepare the frosting by beating together the softened butter, powdered sugar, vanilla extract, and salt. Gradually add milk until the frosting reaches a spreadable consistency.
Once the cookie cups are completely cool, pipe or spread frosting into the center of each cup.
Garnish with additional sprinkles before serving.
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Notes
Store cookie cups in an airtight container at room temperature for up to a week.